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Chinese govt withdraws subsidies to 'famous brands'
Jan '10
In December 2008, the US administration had initiated a dispute at the World Trade Organisation (WTO) against a host of illegal subsidies provided by China to what are the so called 'Famous Brands', to which now the Chinese government has announced the withdrawal of subsidies.

The 'Famous Brand' subsidies were given to Chinese textile and clothing manufacturers to help them develop private labels to compete with other apparel products in domestic and overseas markets.

The US government challenged the subsidies by saying that these incentives gave Chinese manufacturers an unfair advantage and which also denied US producers, the chance to compete fairly with them in the US and other country markets.

Hailing this as a step in the right direction, the President of the National Council of Textile Organizations (NCTO), Mr Cass Johnson said that he is pleased that the US Trade Representative (USTR) has displayed an interest in addressing the question of illegal Chinese subsidies.

While raising its concerns over these subsidies, the US government had said that it has challenged an industrial policy that generated a huge number of central, provincial and local government incentives to promote and increase worldwide recognition and sales of famous brands.

Fibre2fashion News Desk - India

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